wasgotfire
Dryer sheet aficionado
- Joined
- Dec 14, 2009
- Messages
- 30
I’ll try to keep it simple, but would like some advice.
8 months ago my wife got a promotion but had to move to a different city. She moved with our 12 year old in to an apartment. I stayed behind a few weeks to finish up the projects with work and to do a light remodel / update on the house (paid off in 2004).
We bought (cash) two ten acre adjoining lots that are lightly wooded near the city where my wife is working. After I got relocated I found a part time job and started working with a contractor to build the shell of our new house.
We used our savings and cashed in our fidelity fund and were about out of money. We were planning on our other house selling before we got to this point.
We need about $42,000 to finish construction and to get moved in. Early this week we went to 2 banks with the deed from the 10 acre (worth $60-65,000) lot next to our new house to get a $50,000 loan, but I feel that I was given bad info. We were told it would be better to use the house that is for sale, the house under construction, or to get it loaned out of our 401k.
I’m starting to think that it’s our credit that we don’t use. We both have $7,500 credit cards in our own names and every 2 years one of use trades in for a new car. In June both of out credit ratings were in the 730 to 760’s.
My wife (39) is an Emergency Coordinator, EMT-P, NP and makes $79,000. Her 401k had $98,000 last quarter.
I’m (40) an architect currently working 25 hours a week. I should be able to make $75-85,000 when I’m ready for a full time job. My 402k had $102,000 last quarter.
My thoughts…
I have always been told not to take a loan form your 401k but don’t know why it’s a bad idea.
I would think it would be a pain to take a small loan out on a house that’s for sale and have that to deal with at selling.
If I took a loan out on the house that were building it would have to be a construction loan and would have to roll it over into a home loan once it was finished.
To me using the empty land that’s worth about $60,000 for a $50,000 loan makes since; but what do I know?
8 months ago my wife got a promotion but had to move to a different city. She moved with our 12 year old in to an apartment. I stayed behind a few weeks to finish up the projects with work and to do a light remodel / update on the house (paid off in 2004).
We bought (cash) two ten acre adjoining lots that are lightly wooded near the city where my wife is working. After I got relocated I found a part time job and started working with a contractor to build the shell of our new house.
We used our savings and cashed in our fidelity fund and were about out of money. We were planning on our other house selling before we got to this point.
We need about $42,000 to finish construction and to get moved in. Early this week we went to 2 banks with the deed from the 10 acre (worth $60-65,000) lot next to our new house to get a $50,000 loan, but I feel that I was given bad info. We were told it would be better to use the house that is for sale, the house under construction, or to get it loaned out of our 401k.
I’m starting to think that it’s our credit that we don’t use. We both have $7,500 credit cards in our own names and every 2 years one of use trades in for a new car. In June both of out credit ratings were in the 730 to 760’s.
My wife (39) is an Emergency Coordinator, EMT-P, NP and makes $79,000. Her 401k had $98,000 last quarter.
I’m (40) an architect currently working 25 hours a week. I should be able to make $75-85,000 when I’m ready for a full time job. My 402k had $102,000 last quarter.
My thoughts…
I have always been told not to take a loan form your 401k but don’t know why it’s a bad idea.
I would think it would be a pain to take a small loan out on a house that’s for sale and have that to deal with at selling.
If I took a loan out on the house that were building it would have to be a construction loan and would have to roll it over into a home loan once it was finished.
To me using the empty land that’s worth about $60,000 for a $50,000 loan makes since; but what do I know?